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Home Business Extractives/Energy

African Energy Chamber Criticizes Unrealistic Global Energy Transition Goals

January 22, 2025
in Extractives/Energy
Reading Time: 4 mins read
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NJ Ayuk, Executive Chairman of the African Energy Chamber, has argued that the expectations for Africa to transition entirely to renewable energy are both unrealistic and harmful.

Writing about Africa’s energy challenges, Ayuk emphasized the continent’s urgent need for a pragmatic energy strategy that includes fossil fuels alongside renewables to address widespread energy poverty and spur economic growth.

With 600 million Africans lacking access to electricity and nearly a billion without clean cooking fuels, the continent faces a severe energy deficit. Ayuk underscored the necessity of leveraging Africa’s oil and gas resources to address these challenges.

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“The most practical way to reduce emissions while improving energy access is to invest in gas-fired power stations,” he said, citing South Africa, Namibia, and Mozambique as regions rich in natural gas resources.

Ayuk highlighted the impracticality of relying solely on renewables, particularly in urban areas with rapidly growing populations and industrial needs. “While renewables may work in remote villages, they cannot yet provide an affordable and reliable solution for urban centers or major industries,” he argued.6

Ayuk accused Western governments and financial institutions of perpetuating “financial apartheid” by discouraging investments in African energy projects while supporting similar ventures in developed countries.

He noted that banks such as BNP Paribas, HSBC, and Barclays have significantly curtailed financing for African oil and gas projects, citing concerns about environmental impacts.

“This discriminatory behavior stifles Africa’s economic potential and undermines the sovereignty of its nations,” Ayuk said. He criticized the reliance of Western banks and governments on the International Energy Agency’s (IEA) “unrealistic” energy forecasts, which prioritize net-zero emissions targets over the development needs of emerging economies.

Ayuk singled out the IEA for its influential role in shaping global energy policy and its alleged failure to consider the realities of Africa’s energy landscape. In 2020, the IEA shifted its focus from market-driven energy forecasts to hypothetical scenarios aligned with extreme emissions reduction targets.

“These scenarios have steered financial institutions away from investing in critical African energy infrastructure,” Ayuk said, referencing the East African Crude Oil Pipeline as an example.

The pipeline, which promises essential energy and employment opportunities, faced significant opposition from Western policymakers and investors following the IEA’s projections.

A Call for African-Led Solutions

njnewsletter

Ayuk stressed that African countries are best positioned to address their complex energy challenges and called for global institutions like the IEA to respect Africa’s sovereignty. He argued that Africa must prioritize practical solutions, including hydrocarbons, to alleviate energy poverty and foster development.

“While oil and gas may be considered ‘dirty words’ in Paris, London, or New York, hydrocarbons offer cleaner alternatives to the solid biomass and kerosene that 85% of Africans use to cook their food today.”

NJ Ayuk, Executive Chairman of the African Energy Chamber

Ayuk’s commentary underscores the need for a more equitable approach to global energy transition policies. He questioned why African nations are expected to adhere to stringent climate goals when developed nations historically relied on fossil fuels to power their industrial revolutions and improve living standards.

“Europe, the United States, and China have made incredible strides in addressing malnutrition, life expectancy, and disease by powering economic growth with coal, oil, and natural gas. Why can’t we?” Ayuk asked.

NJ Ayuk’s critique highlights the tension between Africa’s development needs and global climate goals. His call for a balanced energy strategy, inclusive of fossil fuels, reflects the continent’s struggle to secure energy access while navigating the pressures of international climate commitments.

Ayuk’s remarks challenge global institutions and policymakers to rethink their approach to Africa’s energy transition, advocating for a pragmatic and inclusive strategy that prioritizes development without compromising sustainability.

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Tags: African Energy Chamber (AEC)Ayuk accused Western governments and financial institutions of perpetuating “financial apartheid” by discouraging investments in African energy projectsglobal energy transitionInternational Energy Agency (IEA)Oil and Gas Industry
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